IShares MSCI USA Value Factor’s target index uses a combination of sector neutrality and forward-looking metrics that have pushed its allocation to a single holding, Micron, up to roughly 25% at one point. While this is a rare occurrence, the single-stock concentration risk of the portfolio warrants a Process Pillar rating downgrade to Average from Above Average.
Process Pillar
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable VLUE’s performance objective and investment process is for both security selection and portfolio construction.
United States